Woodstream Terr, Lanham, MD 20706
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $83,000 and needs light updating (around $10,000 to update carpet, kitchen and bathroom, paint and landscaping). The Borrowers are putting up about $30K+ of their own cash plus fronting the 1st construction draw.
|Loan Amount:||$75,000 1st Mortgage|
|Value of Subject Property:||$ 150,000|
|Loan to Value:||50%|
|Term requested:||6 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed.Â The Borrower will be contributing about $30K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.